Prime Minister Kevin Rudd forced to dump candidate, another quits

Prime Minister Kevin Rudd says it is inappropriate for Mr Lake to represent the party in Hotham.

AAP: Lukas Coch

The Labor Party's election campaign has been stunned by the loss of two candidates in one day, just a week into the campaign.

Prime Minister Kevin Rudd has been forced to dump the Labor Party's candidate for the safe Victorian seat of Hotham, Geoff Lake, over his failure to disclose an altercation with a colleague 11 years ago.

Meanwhile, Labor's charge for the north Queensland seat of Kennedy, Ken Robertson, has stood aside over comments he made about Opposition Leader Tony Abbott.

Last night Mr Rudd issued a statement saying he had requested the party's national executive remove Mr Lake as the endorsed Labor candidate for Hotham.

Mr Lake, a Monash councillor, last month won a bitterly fought pre-selection to contest the seat being vacated by long-serving Labor frontbencher Simon Crean.

But Mr Lake lost the Prime Minister's confidence after he was forced to apologise for verbally abusing a fellow councillor during an argument at a Monash Council meeting 11 years ago.

News Corporation newspapers reported that Mr Lake apologised to the woman at the time and regretted his actions.

"I was a young mayor and I got angry one night and I spoke to her in angry way, which I acknowledged then and I acknowledge now," Mr Lake said, according to News Corp.

Mr Rudd says he has stepped in.

"Earlier today, I asked the National Secretary to report on a range of allegations concerning Mr Lake's conduct in his previous career in local government - in particular his conduct in relation to fellow councillors at the City of Monash Council," Mr Rudd said.